RIDING THE CHANGE WAVE: ARCHITECTING MARKET

RESEARCH FOR THE FUTURE

“RESEARCHERS MUST MAKE THE JOURNEY TO BECOME CONSULTANTS. THE JOURNEY REQUIRES A SHIFT IN HOW

RESEARCHERS DEFINE THEIR PURPOSE, IN WHAT THEY PROVIDE THEIR CLIENTS, IN HOW THEY DEFINE VALUE, IN HOW THEY WORK, AND IN THEIR ABILITY TO INFLUENCE

PEOPLE.

THE FUTURE ROLE OF MARKET RESEARCHERS CAN BE BOILED DOWN TO FOUR HEADLINES:

1) CONSULT, 2) SYNTHESIZE, 3) TELL A STORY, 4) TAKE A STAND.”

From New Roles for Marketing Researchers, S. Chadwick and I. Lewis. Leading Edge Marketing Research, Sage Publishing. Publishing Date Nov 2011

THE JOURNEY BEGINS…

“If you focus on consumer insights, you will develop consumerist strategies, but if you focus on understanding the human condition, then you will understand people’s lives in totality and, therefore, probably have a much better chance of coming up with breakthrough ideas.”

Stan Sthanunathan, Vice President,Marketing Strategy & Insights,The Coca-Cola Company

THE CLIENT HAS SPOKEN“Research has become a game of connecting the dots, thinking like a consultant and being able to pull all kinds of disparate information together to tell a story that will grow the business. The skills and expertise required for the role today make staffing for success difficult. There’s enormous pressure to evolve the function into something much more than it was historically. Social analytics is where we’re moving, and data analytics will be the research currency of tomorrow.”

Michelle AdamsHead of Shopper InsightsPepsiCo

All quotes were collected from public sources.

DRIVERS OF CHANGE

Market Research Suppliers

New competitors: Marketing Agencies,

BI Tech, DIY, SM

Client demands: ROI, Integration, Implications &

Outcomes

Consumers: Engagement,

Socialization, Fun, Rewards

Technology: SM, Mobile, Converged

Lifestyle

Economics: Cheaper, Faster, Better

Human Capital: Changing skill sets

ONLINE PARADIGM SHIFTS TO MOBILE

THE MOBILE DRIVEN DATA ECONOMY

AN INDUSTRY IN TRANSITION

Traditional Business Model

for MR

• Data ponds• Methodological rigor• Objective Reporting• Low touch• Production models• Slow to adapt to technology• Process vs. People• Market focus

Transition Model

• Data Rivers• Methodologically curious• Narratives & Implications• High touch• Deep partnerships• Embracing technology• People vs. Process• Regional focus

Future Model

• Data Oceans• Methodologically agnostic• Narratives, Implications &

Outcomes• High touch• Integration with client orgs• Leading technology• People-driven • Glocal focus

Almost 60% of Client Research VPs expect major transformation by 2020*

70% of whom expect this to be evident by 2015

*38% among total respondents (N=160)Source: Cambiar Future of Research Study, 2011

DON’T TAKE MY WORD ON IT

SURVEY SAYS!

Fall ’11Summer

2011Fall’10

Spring’10

2009 2008 2007 2006 2005 2004 2003

Base: (818) (1008) (673) (875) (512) (284) (366) (600) (336) (720) (431)

Full-service providers

50% 43% 41% 48% 43% 46% 43% 43% 50% 44% 36%

Research consultancy

18% 23% 26% 21% 26% 24% 21% 15% 13% 12% 14%

Academic/non-profit/medical

1% 3% 14% 2% 4% 4% 7% 7% 7% 7% 18%

Data Collection (Quant/Qual)

12% 9% 10% 10% 14% 13% 15% 20% 18% 5% 6%

Research client/buyer

15% 16% 6% 17% 11% 10% 11% 12% 9% 18% 22%

Advertising agency

3% 3% 3% 3% 4% 3% 3% 3% 4% 4% 5%

THE GREENBOOK RESEARCH INDUSTRY TRENDS STUDY

IS IT REALLY CHANGE WE CAN BELIEVE IN?

Note: Among research buyers (n=149) and research suppliers (n=669).

These things threaten our industry and my job.

I see these changes as much more threat than opportunity

I see more threat than opportunity

I see equal measures of threat and opportunity

I see more opportunity than threat

I see much more opportunity than threat

I'm excited for my future and can't wait.

0% 10% 20% 30% 40%

1%

3%

3%

27%

27%

23%

16%

0%

0%

1%

7%

38%

34%

20%

Research buyer or client Research provider or supplier

Note: Among research buyers (n=95) and research suppliers (n=470).

Very little

Some

Quite a bit

A lot

Tremendous

0% 5% 10% 15% 20% 25% 30% 35%

4%

26%

32%

32%

6%

4%

32%

31%

30%

3%

Research buyer or client Research provider or supplier

PERCEIVED THREATS & OPPORTUNITIES

Companies doing their own

research/in house research/DIY

surveys

Online techniques replacing humans

Social media monitoring/mining social media

comments instead of actual

researchMore focus on faster research

alternatives/approaches

Lack of skills to compete

effectively

Lack of budget/limited

funding/cost cutting

Research becoming a low

cost commodity/more focus on low cost

possibilitiesInnovative/new methodologies

Mobile research applications

Social media research

Neuromarketing

Measuring real responses

More data to analyze

Customer centered solutions

IMPORTANCE OF FACTORS IN SELECTING SUPPLIERS

Company owns its own research panel

Uses the latest statistical/analytical packages

Also does qualitative/quantitative research

Uses the latest data collection technology

Company is financially stable

Uses sophisticated collectionresearch technology/collection strategies

Offers unique methodology or approach

Lowest price

Understands new consumer communication channels & technologies

Length of experience/time in business

Provides data analysis services

Consultation on best practices and methodology effectiveness

Breadth of experience in the target segment

Provides highest data quality

Flexibility on changing project parameters

High quality analysis

Good reputation in the industry

Familiarity with the industry or category

Rapid response to requests

Previous experience with client/supplier

Familiarity with client needs

Has knowledgeable staff

Completes research in an agreed-upon time

Good relationship with client/supplier

Listens well and understands client needs

0% 100%

20%

31%

32%

41%

45%

48%

49%

50%

52%

62%

66%

68%

75%

77%

78%

81%

81%

82%

88%

88%

89%

90%

90%

92%

93%

Quantitative Research

0% 100%

17%

19%

33%

32%

41%

34%

51%

42%

53%

69%

48%

68%

81%

76%

84%

81%

82%

85%

87%

86%

90%

86%

89%

90%

92%

Qualitative Research

Note: Among Quantitative Research (n=726) and Qualitative Supplier research suppliers (n=700).

DEMAND FOR A NEW BUSINESS MODEL

“Market research is in transition. Clients want more meaningful insights to create new growth opportunities.”

MR FIRMS ARE ALREADY SHIFTING

25%

35%

39%

Research Providers/ Suppliers

TraditionalBusiness ConsultantStrategic Insights

Note: Among research suppliers (n=268).

THE BIGGEST GROWTH AREAS IN MARKET RESEARCH

Industry Transition

From To

Questioning Discussing

Asking Observing

Data (collection) Insight (analysis)

Insight Foresight

“The Big Survey” “Data Streams”

Rational Emotional

Geographically Fixed Mobile

Quarterly Trackers MROCs

Explore-Create-Test-Launch Co-create

Siloed Converged

CHARACTERISTICS OF THE METHODOLOGICAL SHIFT

WHAT EMERGING TECHNIQUES ARE BEING USED TODAY?

None of these

Gamification methods

Facial analysis

Biometric Response

Mobile Qualitative

Apps' based research

Crowdsourcing

Mobile Ethnography

Prediction Markets

Visualization Analytics

NeuroMarketing

Virtual Environments

Webcam-Based Interviews

Text Analytics

Mobile Surveys

Eye Tracking

Social Media Analytics

Online Communities

0% 5% 10% 15% 20% 25% 30% 35% 40%

31%

6%

6%

5%

13%

11%

8%

14%

10%

8%

4%

7%

19%

21%

24%

15%

27%

33%

28%

3%

4%

5%

5%

6%

7%

7%

7%

7%

11%

11%

12%

16%

17%

27%

30%

36%

Research buyer or client

Research provider or supplier

Note: Among research buyers (n=149) and research suppliers (n=669).

WHAT EMERGING RESEARCH TECHNIQUES WILL BE USED IN 2012?

Facial analysis

NeuroMarketing

Gamification methods

Biometric Response

Prediction Markets

Visualization Analytics

Crowdsourcing

Virtual Environments

Eye Tracking

Mobile Ethnography

Mobile Qualitative

Apps' based research

Webcam-Based Interviews

Text Analytics

Mobile Surveys

Social Media Analytics

Online Communities

0% 10% 20% 30% 40% 50% 60% 70%

13%

11%

25%

10%

21%

24%

24%

22%

21%

43%

46%

40%

46%

45%

64%

59%

64%

9%

11%

11%

13%

16%

17%

19%

23%

31%

31%

31%

32%

35%

43%

53%

66%

66%

Research buyer or client

Research provider or supplier

Note: Among research buyers (n=149) and research suppliers (n=669).

THE RESEARCHER OF THE FUTURE: RECRUITING FOR FUTURE GROWTH

Client researchers and suppliers have developed as project managers, becoming

more proficient at managing projects as their careers developed. The river concept offers a paradigm shift in which researchers will need

to become synthesizers. This will require substantial training, rewriting of job

descriptions, and reevaluating hiring criteria.

The Shape of Marketing Research in 2021JAR March 2011Micu, Dedeker, Lewis, Moran, Netzer, Plummer and Rubinson

EMERGING RESEARCH MANAGER ROLE

What are the emerging responsibilities?

What are the emerging success factors?

• Understand specific business needs of client and other business functions

• Mine information sources

• Supplement information sources with research studies if needed

• Synthesize information, identify insights and recommend actions

• Communicate and follow-up to create business impact

• Business knowledge

• Consulting skills

• Understanding of wide range of

information sources

• Ability to synthesize from a wide range of information sources

• Storytelling skills

From New Roles for Marketing Researchers, S. Chadwick and I. Lewis. Leading Edge Marketing Research, Sage Publishing. Publishing Date Nov 2011

Role: to leverage a wide range of information sources in order to drive business impact

NEW SKILLS FOR A NEW ERA

ANTHROPOLOGIST

FUTURIST

JOURNALIST

CONSULTANT

ANALYST

STRATEGIST

The Researcher of Today

The Researcher of the Future

Storytellers

Methodologically agnostic

Synthesizers

Consultants

Data reporters

Narrowly focused

Service Providers

WHAT ARE THE SKILLS FOR SUCCESS?

CONSULTING AND STORYTELLING ARE TOP TRAINING NEEDS

Innovative research methodologies

Developing rich insights

Synthesis of info from multiple sources

Influencing skills

Storytelling and other impactful presentation skills

Consulting skills

31

36

38

40

54

63

% Rate as Top 3 Training Need Among 9 Needs plus “other”

71% large depts.

62% VP+, 61% large dept.

49% large dept.

54% Analyst

53% < 5 yrs in MR

Source: Cambiar Future of Research Study, 2011

THE TYPES OF ROLES GRIT RESPONDENTS EXPECT TO HIRE

Total Client Suppliers Gap

Base: (1008) (209) (799) +/-

% % %

More social media experts 53% 53% 54% -1%

More marketing strategists 46% 54% 43% 9%

More data integration experts 40% 45% 38% 7%

More experts in the mechanics and technologies of data collection 39% 28% 42% -14%

More business strategists 32% 41% 30% 11%

More bilingual (or poly-lingual) employees 30% 21% 32% -9%

More sociologists or anthropologists 23% 14% 25% -11%

More process (i.e., supply chain) strategists 10% 10% 11% -1%

More field interviewers 7% 4% 8% -4%

Other 11% 9% 12% -3%

None of these/ No new skills 8% 7% 8% -1%

THE RESEARCHERS OF THE FUTURE WILL BE:

ARCHITECTING THE MARKET RESEARCH FIRM OF THE FUTURE

Telephone & web-based survey research declines dramatically.

Surveys become much shorter.

Target demographic panels become highly valued as participation rates drop.

Listening, as defined by real-time social media monitoring and MROCs, flourishes.

Research becomes more mobile, geography and time focused.

As more is discovered about our emotion-based decisions, the industry begins to focus more on emotional measurement (projective techniques, eye tracking, facial scanning, neuromarketing).

Overwhelmed by data, but lacking insights, corporations turn to data-insights consultants that analyze multiple data streams within a corporation. IBM is clearly headed in this direction, as are some management consulting firms.

The “data-driven insights industry” booms, but large, traditional, market research firms struggle to keep up. New entrants overwhelm and redefine the field.

The “data-driven insights industry” undergoes a merger between traditional MR, management consulting research, social media listening, CRM, shopper trends, neuroscience, predictive analytics and strategic foresight.

BASELINE FORECAST FOR MARKET RESEARCH

WHERE DOES TRANSFORMATION BEGIN?

“Strategic differentiation does not occur by

delivering data, it occurs by redesigning thinking”

THE 4 AREAS WE MUST RETHINK

1. Client Needs & Expectations

2. People Skills and Capabilities

4. Process

3. Technology Enablers

Data Synthesis

Measurable Client ROI

Innovative Approaches

Leading-edge Technology

Curious & Creative

Delivering Impact

Strategic Insight

Consulting

CREATING A NEW VISION

Building a holistic model that is based on leveraging key values and strengths in new ways to lead the future

2011 Rank Company Votes2010 Votes

2010 Rank Difference

2011 Rank Company Votes

2010 Votes

2010 Rank Difference

1 BrainJuicer 204 60 1 0 26 Maritz 12 11 15 (11)2 Ipsos 110 25 5 3 27 Qualtrics 12 0 0 58

3 Vision Critical 88 32 3 0 28 Insight Consulting Services 10 0 0 57

4 Kantar Operations/TNS 84 32 2 (2) 29 SSI 10 0 0 56 5 Nielsen 77 25 6 1 30 Conversition 10 0 0 55 6 GfK 64 17 7 1 31 Decipher 10 0 0 54 7 Synovate 59 31 4 (3) 32 FreshMinds 9 0 0 53 8 itracks 47 18 8 0 33 Burke 9 7 28 (5)9 20/20 Research 38 15 9 0 34 comScore 9 0 0 51

10 Millward Brown 29 14 11 1 35 Sawtooth 9 0 0 50 11 InSites 26 5 38 27 36 GMI 8 0 0 49

12 Affinnova 26 9 21 9 37 Lieberman Research Worldwide 8 4 40 3

13 Anderson Analytics 22 21 7 (6) 38 Firefish 8 0 0 47 14 Qualvu 21 11 16 2 39 Flamingo 8 0 0 46 15 MarketTools 20 7 27 12 40 Forrester 8 6 32 (8)16 Communispace 20 15 11 (5) 41 MESH Planning 8 0 0 44 17 Toluna 19 10 20 3 42 BuzzBack 7 4 45 3 18 Revelation 18 10 19 1 43 Join the Dots 7 0 0 42

19 Harris Interactive 17 0 0 66 44 Research Through Gaming 7 0 0 41

20 NeuroFocus 16 8 22 2 45 Truth 7 5 39 (6)21 Research Now 16 8 24 3 46 Gallup 7 6 30 (16)22 Hall & Partners 14 6 31 9 47 SymphonyIRI 6 0 0 38 23 e-Rewards 14 6 33 10 48 EmSense 6 6 29 (19)24 Hotspex 12 0 0 61 49 Schlesinger 6 0 0 36 25 uSamp 12 4 49 24 50 McKinsey 6 0 0 35

GRIT 50: THE MR FIRMS OF THE FUTURE

THE FUTURE IS UP TO YOU; WHICH WAY WILL YOU GO NOW?